Egypt has announced that it will be constructing a petrochemical complex in Ain Sokhna on the Gulf of Suez at an investment of $7.5 billion to meet the demand for petroleum products in the local market.
A deal has been signed between the Red Sea National Refining and Petrochemicals Company and the Suez Canal Economic Zone’s development company in this regard.
The signing ceremony was attended by Prime Minister Mostafa Madbouly and Tarek Al Mulla, minister of petroleum and mineral resources, along with the representatives of the companies.
The project spread across an area of 3.56 million square metres, will provide direct and indirect employment opportunities, attract foreign investment and make Egypt a regional centre for oil and gas trading, Egyptian media reports quoted Al Mulla as saying.
The complex will produce polyethylene, polypropylene, polyester, ship fuel and other petroleum and chemical products to help the country reduce the volume of imports and generate export opportunities, the Egyptian government said in a statement.
The development arm of the Suez Canal Economic Zone is developing an area of 20 kilometres in the Ain Sokhna industrial zone.
Earlier this year, Egypt had signed nine oil and gas deals with local and international energy companies to explore the eastern and western Mediterranean Sea and Red Sea at an investment of $1 billion.